Relax. Student Debt is an investment... apparently.

With the recently passed government proposal to increase tuition fees for UK Students starting course in 2006 to around £3000 a year, one would assume this means students are likely to borrow more and at the end of their course will owe more, but how is this debt seen? The crux of the matter is whether students will be discouraged to attend university courses, particularly extended courses with work experience placements due to the relative cost and subsequent debt.

Although hard to clarify UK Government view student debt as detached and of no resemblance to debt associated with credit cards or even bank loans, but instead they argue that “real interest free loans, repayable if and when the student is earning a good wage and at a level that is easily affordable means that this is more of an individual tax, or a long term investment than a debt”.

This is an interesting point of view, especially relevant when promoting debt management among students. It is reassuring to hear that such debts carry a lower rate of interest than many of the high street banks offerings, but also that repayment occurs after you have graduated.

UK Government further believes that ensuring student have enough money to live on whilst they are at University is paramount, in order to protect access for the poorest students.

The experience of university, not only referencing the practical and theoretical understanding (of your chosen subject) gained is money well invested in our book. Research has proving that graduates can enter higher paid and management positions quicker than those that start at the bottom of the ladder. Considerations might also be cast towards the practical industrial experience of taking part in paid work placement, commonly known as “Sandwich courses”, where two academic years at university are followed by a years work outside of university often in a company relevant to the subject you are studying, before finally completing your final year back at university.

Aside from the ability to repay your student debts over this year, its also a great opportunity to take the heat off and relax before knuckling down in your final year.

With grant, bursaries and loan extensions available for students, one should not be discouraged from apply or even attending university.   Accommodation costs and university fees (often the larger outlay) can be spread across the year, and providing that a realistic budget plan is drawn up you will be able to get a better understanding of what you can afford, before contact the local authorities as to what you might need assistance with.

Clear Student Debt offer a range of resources to help manage your finances, but it's important to recognise that the only one ultimately responsible for any hardship or debt is you – so why not check out the rest of the website for advise on making the most of your student finances and ensuring that you don't get into over inflated and unnecessary debt.

For details on eligibility for grants click here or if you wish to contact the Student Loans Company directly then click here.

Why the Adverts?